WB plans to provide $2bn credit during this fiscal year

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WB plans to provide $2bn credit during this fiscal year

ISLAMABAD: The Bank Group plans to provide up to $2 billion in credits during this fiscal year to support economic growth and the Government’s poverty-focused programs, said Yusupha Crookes, World Bank Country Director for Pakistan.

These projects will support the immediate challenges in education, health, safety nets and community-led development, while laying the foundation for investment in infrastructure to foster long-term growth and job creation. “As the macroeconomic situation improves, additional forms of financing will also become available, he added.

Ms Ngozi Okonjo-Iweala, Managing Director of the World Bank Group has urged Pakistan economic team for revenue mobilisation and investment in infrastructure, expanding the export base, enhanced regional cooperation, agriculture development and results-based education for realising growth and poverty reduction.

Iweala, who concluded an official visit to Pakistan today, recognised that the Government of Pakistan is moving swiftly to start correcting macroeconomic imbalances, particularly in light of the global financial crisis. She commended government’s efforts in launching an ambitious safety net programme, the Benazir Income Support Program, to support the poorest. She also emphasized the need to focus on the long-term development agenda.

“Pakistan is now moving in the right direction and its reform programme will lay the foundation for inclusive and sustainable growth,” said Okonjo-Iweala. “The World Bank Group is committed to supporting Pakistan in line with its vision for equitable progress and rapid development. We are committed to working with the Government during this difficult time, protecting the most vulnerable groups and carrying out critical reforms that will set the basis for higher, inclusive and sustainable economic growth.”

During her visit Okonjo-Iweala met President Asif Zardari, Prime Minister Yousuf Raza Gilani and the economic team to discuss the current macroeconomic situation and focus on long-term issues. In discussions with the private sector, she noted the importance of public-private partnerships and using the infrastructure gap as an opportunity to build regional linkages. In a meeting with civil society and community leaders from NWFP she expressed sympathy with those who are struggling to cope in an increasingly difficult environment and emphasised the need for improving conditions and providing livelihood opportunities.

She praised the government’s stabilisation programme and signaled the Bank Group’s strong support. Economic stabilisation, she noted, should only be a means for sustainable development, focusing on new efforts to enhance human capital formation, create jobs and improve the standard of living of the poor. Comprehensive and innovative approaches to skills development and equitable education access are particularly important. She also cautioned that the global economic situation poses continued challenges and government will need to maintain its strong reform programme.

During her meetings with authorities Okonjo-Iweala stressed the importance of ensuring well targeted safety nets in place, especially in times of economic crisis. She commended the Government of Pakistan for launching the Benazir Income Support Programme, a government initiative designed to provide financial support to the poorest families. Drawing on the World Bank Group’s experience elsewhere, notably in Latin America, she underscored that these programmes can be particularly effective when they are well targeted and transparently managed. staff report

http://www.dailytimes.com.pk/default.asp...2009_pg5_1